Financial planning through the generations – are your family informed?

Financial planning through the generations – are your family informed?

At Brunsdon Financial, we understand that having conversations about inheritance and what happens to your estate after you pass on can be an uncomfortable topic that many may rather avoid. But, as we’ve said before, the importance of planning for the future can never be underestimated, and that includes keeping those involved in the loop.

You may have ideas confirmed in your mind about what you’ll be passing down to your beneficiaries and in what form, but have you discussed this with them? As life expectancy increases, a balance needs to be struck between having enough money to enjoy retirement, ensuring some exists for unforeseen circumstances, like later life care, as well as considering what will be given to loved ones.

Recent figures state that approximately £5.5 trillion is set to be inherited in the UK over the next decade[1]. But inheritance in all its forms can be complex so it’s worth taking the time to understand the nuances that exist around it. From tax-free allowances to gifting assets, each circumstance has specific areas to consider that are also unique to each individual.

Communication is key

Discussing what happens to your wealth after you’ve passed on is naturally a sensitive subject. We can help. We have experience discussing personal finances at different generational levels and would be happy to assist with communication on the topic. It may also be helpful for your children to begin to build a relationship with a financial planner. Recent data states that 59% of inheritance donors want their children to see a financial adviser, but only 9% have discussed it[2]. We want to help change that and are happy to have discussions with your beneficiaries present to begin to help them understand the processes that may be involved around inheritance tax (IHT). Talking about money with the whole family at an earlier stage can avoid difficult conversations that may arise later on in life.

We are also able to discuss your assets, and the tax implications and rules around each of these. This not only applies to property but also gifting income, capital and pensions. For example, as we are all living longer, inheritance can arrive later in life for some. We can discuss ways to support your younger family members sooner with methods such as in-life wealth transfers. This could be a way to transfer wealth in a potentially exempt way and could assist your children with setting themselves up at a time in their lives where they are living with lower income but high associated living costs.

Having conversations regarding intergenerational planning at your reviews with your Adviser, can help to normalise the subject of inheritance and prepare for the future. Whatever your financial goals, we want to help you achieve them and that goes for your beneficiaries’ goals too.

To find out more about intergenerational planning, please get in touch with your Adviser today.

Source 1, Source 2

Brunsdon Financial is not responsible for the content of third-party web sites.

The information provided regarding tax treatment or legislation is based on our understanding of current UK legislation law, tax law and HM Revenue and Customs practice (March 2021), all of which may be subject to change. The Financial Conduct Authority does not regulate tax advice and estate planning. Brunsdon Financial is not responsible for the content of third-party web sites.

Financial planning through the generations – are your family informed?

Financial planning through the generations – are your family informed?

At Brunsdon Financial, we understand that having conversations about inheritance and what happens to your estate after you pass on can be an uncomfortable topic that many may rather avoid. But, as we’ve said before, the importance of planning for the future can never be underestimated, and that includes keeping those involved in the loop.

You may have ideas confirmed in your mind about what you’ll be passing down to your beneficiaries and in what form, but have you discussed this with them? As life expectancy increases, a balance needs to be struck between having enough money to enjoy retirement, ensuring some exists for unforeseen circumstances, like later life care, as well as considering what will be given to loved ones.

Recent figures state that approximately £5.5 trillion is set to be inherited in the UK over the next decade[1]. But inheritance in all its forms can be complex so it’s worth taking the time to understand the nuances that exist around it. From tax-free allowances to gifting assets, each circumstance has specific areas to consider that are also unique to each individual.

Communication is key

Discussing what happens to your wealth after you’ve passed on is naturally a sensitive subject. We can help. We have experience discussing personal finances at different generational levels and would be happy to assist with communication on the topic. It may also be helpful for your children to begin to build a relationship with a financial planner. Recent data states that 59% of inheritance donors want their children to see a financial adviser, but only 9% have discussed it[2]. We want to help change that and are happy to have discussions with your beneficiaries present to begin to help them understand the processes that may be involved around inheritance tax (IHT). Talking about money with the whole family at an earlier stage can avoid difficult conversations that may arise later on in life.

We are also able to discuss your assets, and the tax implications and rules around each of these. This not only applies to property but also gifting income, capital and pensions. For example, as we are all living longer, inheritance can arrive later in life for some. We can discuss ways to support your younger family members sooner with methods such as in-life wealth transfers. This could be a way to transfer wealth in a potentially exempt way and could assist your children with setting themselves up at a time in their lives where they are living with lower income but high associated living costs.

Having conversations regarding intergenerational planning at your reviews with your Adviser, can help to normalise the subject of inheritance and prepare for the future. Whatever your financial goals, we want to help you achieve them and that goes for your beneficiaries’ goals too.

To find out more about intergenerational planning, please get in touch with your Adviser today.

Source 1, Source 2

Brunsdon Financial is not responsible for the content of third-party web sites.

The information provided regarding tax treatment or legislation is based on our understanding of current UK legislation law, tax law and HM Revenue and Customs practice (March 2021), all of which may be subject to change. The Financial Conduct Authority does not regulate tax advice and estate planning. Brunsdon Financial is not responsible for the content of third-party web sites.

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